IRCON International Share Price Gains Despite Market Crash on ₹1,068 Crore Railway Order

Market Performance

In a surprising move amid a broader market downturn, IRCON International's share price saw notable gains on Monday, June 2. This rise came despite the Indian stock market experiencing a significant dip, with both the BSE Sensex and NSE Nifty losing 0.80% in early trading.

• Opening Price: ₹194.20 (+1.8% from the previous close of ₹190.80)
• Intraday High: ₹198.80 (+~4%)

This positive movement in IRCON shares was driven by a substantial order update.

Main News: ₹1,068 Crore Railway Project Boosts IRCON Shares

IRCON International's share price climbed after the company disclosed a significant contract win from East Central Railway. The company received a Letter of Acceptance for an Engineering, Procurement, and Construction (EPC) project.

Key Project Details:

• Client: East Central Railway (Indian Railways)
• Project Scope: Construction of a new Broad Gauge (BG) rail bridge across the Ganga river
• Bridge Type:
  • 2 spans of 32.086 meters Open Web Steel Girder
  • 33 spans of 122.0 meters Open Web Steel Girder
• Track Details:
  • Double-line track substructure
  • Single-line track superstructure
• Location: Between Bikramshila and Katareah stations
• Contract Value: ₹1,068.35 Crore
• Project Duration: 1,460 days

Company Financials: IRCON International Q4 FY25 Highlights

Despite the positive order news, IRCON's latest quarterly results showed some weakness in its core financial performance.

Revenue

• Q4 FY25 Revenue: ₹3,412 crore
• YoY Decline: 10% (Q4 FY24: ₹3,787 crore)

Net Profit

• Q4 FY25 Profit: ₹212 crore
• YoY Decline: 14% (Q4 FY24: ₹247 crore)

The decline in both revenue and net profit reflects operational challenges, though the new order inflow could signal future recovery potential.

Company Overview

IRCON International Limited, a Navratna Public Sector Undertaking (PSU) under the Ministry of Railways, is recognized for executing large-scale infrastructure projects across India and internationally. The latest order reaffirms its strong positioning in the railway infrastructure segment.

Summary

Despite a volatile day in the Indian stock market, IRCON International's share price defied the trend, rallying up to 4% after bagging a ₹1,068 Crore contract from East Central Railway. While the company's Q4 FY25 earnings saw a decline in both revenue and profits, the new order has sparked renewed investor interest.

The spike in IRCON International's share price highlights market confidence in its robust order pipeline and execution capabilities, especially within India's expansive railway infrastructure growth plans.